Some traders have speculated that China might liquidate its $1.1 trillion of U.S. Treasury bonds as a way of striking back against President Donald Trump's tariffs on imports from the country. But such a scenario might hide the real urgency: The Chinese government might need the cash, according to the wealth manager deVere Group.

Talks between top administration officials and Chinese negotiators are planned for Friday after the latest round of discussions failed to halt President Trump's threat to raise to 25% the tariffs on $200 billion in Chinese goods.